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Disclosure announcement transmitted by euro adhoc. The issuer is responsible
for the content of this announcement.
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annual report

08.03.2007

In 2006, the global market for steel products was once again
extremely robust, with economic momentum in some segments even
stronger than in the two preceding years. Against this favorable
background, Salzgitter AG set new benchmarks for sales and profit
with its rolled steel and tubes products.

Taking the sum total of the individual plans of the subsidiaries and
including the holding company, inevitable consolidation effects and
the current business data of the first months of 2007, the following
overall conclusion can be drawn on the estimated development of the
Group:

Given external sales that remain virtually unchanged, we expect
operating pre-tax profit for the current financial year 2007 to be
again in the more ambitious triple-digit million euro range. In view
of the end of the operating contribution from Vallourec coupled with
trading margins returning to a normal level it would, however, appear
too ambitious at this time to expect a repeat of the previous years
level (EUR 947.9 million). We make express reference to the fact that
opportunities and risks arising from selling price, input material
price and capacity utilization trends, which are currently not
foreseeable, as well as changes in exchange rates may exert a
considerable impact on the course of business in the financial year
2007. The resulting fluctuation bandwidth of consolidated pre-tax
profit can, as seen in previous years, be of considerable dimensions,
in both a positive and negative sense.

For further details and a detailed outlook on the current financial
year, please refer to todays press release (see
www.salzgitter-ag.de).